Databricks is reportedly in talks to raise new capital at a valuation of as much as $175 billion, extending one of the steepest private market climbs in enterprise AI.

The data and AI company has discussed a funding round that could begin as soon as next month and value it between $165 billion and $175 billion, according to The Information. That would mark a sharp jump from the $134 billion valuation Databricks secured earlier this year.

The company raised $5 billion in equity financing in February, alongside roughly $2 billion in new debt capacity. The funding gave Databricks more capital to invest in AI products, acquisitions, research, and employee liquidity while delaying the need for a public listing.

Databricks has become one of the clearest private market winners from the AI boom. Its annualized revenue run rate reached $5.4 billion, up more than 65% from a year earlier, with AI products contributing about $1.4 billion.

The valuation math is aggressive. A $165 billion valuation on $5.4 billion of annualized revenue implies a multiple above 30 times sales, a level that leaves little room for a slowdown in growth.

The company’s rise has been rapid. Databricks was valued at $38 billion in 2021, then $62 billion in 2024, before crossing $100 billion in 2025 and reaching $134 billion in early 2026.

The IPO question remains unresolved. CEO Ali Ghodsi has said Databricks is ready to go public but is waiting for the right market conditions. Staying private gives the company more control over timing while investors continue bidding up AI infrastructure and software assets.